EMC's quarterly results show it printing money at an increasing rate, fuelled by software, especially VMware. Quantum's revenues are flat but its gross margin is up and losses much reduced.


The expanding money generation game that is EMC revealed terrific quarterly results. We can't get enough of EMC's products.

The highlights are quarterly (Q3 07) revenue of $3.3 billion, up 17 percent on the Q3 06 total. EMC says its net income at $492.9 million, $0.23 per diluted share, was up 77 percent on the year-ago quarter.

Of course the burning bright star was VMware with its IPO and quarterly performance. Quarterly revenue increased 90 percent compared to the year-ago quarter.

EMC's systems revenue increased 9 percent. They were 43 percent of overall revenue. Its software licence and maintenance revenues increased 25 percent, forming 41 percent of revenues, and services revenues increased 25 percent as well, providing 16 percent of the quarter's overall revenues.

In its Information Storage business there was strong growth for Clariion and Celerra arrays, the Disk Library for Backup, Avamar for data de-duplication and RecoverPoint for CDP. SMARTS and Rainfinity had double-digit growth.

EMC's content management and archive business also had double-digit growth. (Think Documentum and Centera.)

RSA security revenues grew 22 percent too.

Symmetrix wasn't singled out so we might conclude growth in the high-end drive array business wasn't stellar. InVista, the storage area network (SAN) fabric-based management software, wasn't mentioned either; two flattish spots then.

Joe Tucci, EMC charirman, president and CEO, talked of 'solid global execution.' However, in a sign that EMC thinks the company's shares are still under-valued by the stock market it doubled its share buy back programme from $1 billion to $2 billion.

EMC is on a roll and has been for 17 quarters. Where is it going to end? This VMware-fuelled rush shows no sign of stopping and companies that were closer to EMC in size a year or two ago, must now be scratching their heads about what to do.

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